Handbook of Regional Growth and Development Theories
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Handbook of Regional Growth and Development Theories

Edited by Roberta Capello and Peter Nijkamp

Regional economics – an established discipline for several decades – has gone through a rapid pace of change in the past decade and several new perspectives have emerged. At the same time the methodology has shown surprising development. This volume brings together contributions looking at new pathways in regional economics, written by many well-known international scholars. The most advanced theories, measurement methods and policy issues in regional growth are given in-depth treatment.
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Chapter 18: Measuring Regional Endogenous Growth

Robert J. Stimson, Alistair Robson and Tung-Kai Shyy


Robert J. Stimson, Alistair Robson and Tung-Kai Shyy 18.1 Introduction The importance of endogenous factors in regional economic development and growth has long been recognized and is largely the basis of the so-called ‘new growth theory’ that has been popularized since the 1980s. Theories of regional endogenous growth place emphasis not only on regional resource endowments and human capital – which have always been viewed as important factors affecting the economic development of regions – but also on technology, entrepreneurship and institutional factors, including the role of leadership. However, there is neither a standard definition of endogenous growth, nor a specification of an operational model including those factors that determine spatial variations in regional endogenous growth performance. In fact, there is no universally accepted measure of endogenous growth.1 This chapter first provides an overview discussion of endogenous growth factors. It then proposes a measure of regional endogenous change which is readily calculable from secondary analysis of regional employment data available in the national census. The regional or differential/regional shift component derived from shift-share analysis of employment change over time is proposed as a viable proxy measure as a dependent variable in an endogenous growth model. A series of independent variables which also may be derived from census data are specified in the model as factors likely to explain spatial variability in regional performance on that dependent variable. Those variables are taken as reflecting the types of factors that are proposed in the regional economic development literature...

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